Katanga Signs Mandate Letter for US$260 Million Bank Facility

LONDON, UNITED KINGDOM--(CCNMatthews - March 23, 2007) - Katanga Mining Limited (TSX:KAT) today announced that it has appointed Fortis, Investec Bank Limited and Standard Chartered Bank as Mandated Lead Arrangers to arrange and underwrite a total of US$260 million in project financing ("the Facility") for its Kamoto Joint Venture, which is rehabilitating mines and plants near Kolwezi in the Democratic Republic of Congo.

The financing will include a US$100 million commercial bank tranche, a US$100 million Export Credit Agency tranche and US$60 million from Development Funding Agencies. Each Mandated Lead Arranger has obtained approval to proceed on this basis, subject to satisfactory due diligence and documentation. It is expected that the Facility will close during the second quarter of 2007 and will be available for drawdown in the third quarter of 2007.

Katanga has received letters of interest from a number of Development Funding Agencies, including Development Bank of Southern Africa (DBSA), Emerging Africa Advisers and Netherlands Development Finance Company (FMO).

Katanga will use the net proceeds of the bank facility to fund the refurbishment and development of its mine complex and for working capital as the project comes into production. This Facility provides Katanga sufficient funding to complete all four phases of rehabilitation of the mines and plants.

"This is the third and final phase of our capital structure," stated Arthur Ditto, President & CEO of Katanga. "After a successful equity offering in May and a debenture offering in November, this Facility is the last step to completing the financing to enable us to produce 150,000 tonnes of refined copper and 5,000 tonnes of refined cobalt a year by 2011 (see press release dated February 22, 2007)."

Katanga Mining Limited is becoming significant in global copper mining by rehabilitating mines and plants near Kolwezi in the Katanga Province of the Democratic Republic of Congo.

The site is getting ready to ship copper in December 2007. By 2011, the complex will produce 150,000 tonnes of refined copper and 5,000 tonnes of refined cobalt a year and will be among the world's lowest cost producers.

The Company is listed on the Toronto Stock Exchange under the symbol KAT.

Caution regarding forward-looking statements: The forward-looking statements made in this news release are based on management's assumptions and judgments regarding future events and results. Such forward-looking statements, including but not limited to those with respect to the prices of copper and cobalt, reserve and resource estimates, and estimated future production, involve known and unknown risks, uncertainties and other factors which may cause the Company's actual results, performance or achievements to be materially different from any anticipated future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the actual market prices of copper and cobalt; the actual results of current exploration; the actual results of future mining, processing and development activities; and changes in project parameters as plans continue to be evaluated; as well as those factors disclosed in the Company's filed documents.